Apple will shift all assembly for those iPhones shipped to the U.S. for sale to India, starting as early as next year. This constitutes a substantial shift in the company’s worldwide manufacturing strategy. Reducing the company’s dependency on China is the need of the hour, especially with the geopolitical tensions and ongoing trade discussions between the U.S. and China.
In other words, the two main deciding factors will be the pace at which India can build its supply chain capability and how negotiations on U.S.- China trade proceed. Donald Trump pushed Apple several times to please leave China and stated that conversations with China about tariffs were still ongoing.
India's manufacturing sector is now becoming strong and booming. Apple’s major partners like Foxconn are increasing production capacity dramatically. This particular Foxconn plant being opened in Bengaluru will start this month and could produce up to 20 million iPhones a year. Nearly 70% of Apple's exports from India come from this supply chain, with the Tamil Nadu facility accounting for almost 50% alone. Export volumes are over 40% higher than last year.
India is fast emerging as a prime location for Apple itself. Last year, iPhone exports worth $22 billion were produced from India, accounting for 20% of the global share. In the first quarter of 2025, India registered the highest iPhone sales with more than 3 million units sold, prompted by EMI offers, cashback, and online deals.